First quarter revenue of $11.4 million was 66% higher than the
corresponding quarter of last year. Approximately one third of this
increase was as a result of the weakening of the Canadian Dollar
against Sterling. The rest of the change comprised a major increase in
the sales of power modules and die and bipolar devices partially offset
by small reductions in sales of power assemblies and services.

A gross profit of $1.0 million was made in the quarter. A small gross
loss of $249,000 was made in the corresponding quarter of last year.
The gross margin of 8.8% was significantly below the range targeted by
management.

Other income, expenses and costs increased by $496,000 to $1.7 million.
Approximately half this increase was as a result of the weakening of
the Canadian Dollar against Sterling. The rest of the change related to
an increase in research and development activity and some staff
increases in the areas of administration and health and safety.
Because of the large increase in revenue in the period, other income,
expenses and costs represented 16.4% of revenue in the 2014 period
compared with 16.8% in the corresponding quarter of last year.

As a consequence of these changes, the Company recorded a loss before
tax of $516,000, compared to a loss before tax of $1.4 million in the
corresponding quarter of last year. The loss was primarily due to
continuing problems with the yield on new products. A $118,000 recovery
of UK tax resulted in a net loss for the period of $516,000 or $0.01
per share, compared with a net loss of $1.4 million, or $0.01 per
share, in the corresponding period of last year.

Unfortunately, the yield issue referred to above will continue to
depress revenue in the second quarter. Second quarter revenue is now
forecast to be slightly below that reported in the first quarter and a
further loss is anticipated. New equipment which is currently being
installed is expected to enable yields to recover early in the third
quarter and the level of demand from CSR Times Electric is sufficient
to return Dynex to profitability for the remainder of the year.

Dr. Paul Taylor, President and Chief Executive Officer commented,
"Although revenue showed a significant increase over the corresponding
quarter of last year, we were unable to return to profitability. The
problem with yields on new products that had affected our results for
the fourth quarter of 2013 will continue until the new equipment is
operational. We have ordered and are currently installing this
equipment. The cost of the new equipment is $5.1 million. We are
fortunate that CSR Times Electric is lending us the money to purchase
this equipment."

Dr. Paul Taylor continued, "Despite this poor start to the year,
management still expects to show revenue growth and a return to
profitability in 2014. The most important comment I would make is that
no one is happy with the current results and we are committed to
significant improvement."

Bob Lockwood, Chief Financial Officer commented, "Whilst revenue and the
operating result both improved in the first quarter of 2014 compared to
the corresponding quarter of 2013, the change from the results reported
in the last quarter of 2013 is more complex. As expected, revenue did
show a decline but nevertheless there was a significant reduction in
the net loss for the quarter. A further loss is expected in the second
quarter. Whilst this is disappointing, the order book for the third
quarter and the demand for die from CSR Times Electric are sufficient
for us to return to profitability for the second half of the year and
to give us confidence that we will be able to report revenue growth for
2014 overall."

Li Donglin, the Chairman of Dynex said, "Whilst there has been some
improvement in performance in the first quarter of 2014, further
improvement is required. The recovery in most of Dynex's markets is
slower than expected but there are significant opportunities for Dynex
in the Chinese railway and urban mass transit sectors. We do,
therefore, expect to see growth and a return to profitability in 2014."

Forward-looking Statements
In commenting on its expectations, the Company cautioned existing and
potential shareholders about relying on the Company's expectations in
that the Company's expectations contain forward looking statements and
assumptions which are subject to the risks and uncertainties of the
markets and the future, which could cause actual results to differ
materially from expectations, and which are each difficult and
subjective to forecast. Certain of those risks and uncertainties are
discussed in the Management's Discussion and Analysis for the quarter
ended September 30th, 2012 and include, among other things, risks and
uncertainties relating to: the level of worldwide demand for power
semiconductors and power semiconductor assemblies; the level of
investment in power electronic equipment, electrification of transport
systems, alternative power generation and high quality power
transmission and distribution; the worldwide demand for and supply of
silicon; and fluctuations in exchange rates between Canadian Dollars,
Sterling, US dollars and Euros. As a consequence of these and other
risks and uncertainties, shareholders and potential investors must make
their own independent judgments about the accuracy and reliability of
the Company's expectations. Dynex disclaims any intention or obligation
to update or revise any forward looking statement whether as a result
of new information, future events or otherwise.

About the Company
Dynex designs and manufactures high power bipolar semiconductors, high
power insulated gate bipolar transistor (IGBT) modules, high power
electronic assemblies and radiation hard silicon-on-sapphire integrated
circuits (SOS IC's). The company's power products are used worldwide in
power electronic applications including electric power transmission and
distribution, renewable and distributed energy, marine and rail
traction motor drives, aerospace, electric vehicles, industrial
automation and controls and power supplies. Our IC products are used in
demanding applications in the aerospace industry. Dynex Semiconductor
Ltd is its only operating business and is based in Lincoln, England in
a facility housing the fully integrated silicon fabrication, assembly
and test, sales, design and development operations. Dynex is majority
owned by Zhuzhou CSR Times Electric Co., Ltd.

Zhuzhou CSR Times Electric Co., Ltd. is based in Hunan Province in the
People's Republic of China. It is listed on the Hong Kong Stock
Exchange. CSR Times Electric is mainly engaged in the research,
development, manufacture and sales of locomotive train power
converters, control systems and other train-borne electrical systems,
as well as the development, manufacturing and sales of urban railway
train electrical systems. In addition, CSR Times Electric is also
engaged in the design, manufacturing and sales of electric components
including power semiconductor devices for the railway industry, urban
railway industry and non-railway purposes.

Press announcements and other information about Dynex Power Inc are
available at www.dynexpower.com.

Information about Dynex Semiconductor Ltd and its products can be found
at www.dynexsemi.com.